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91
Tauran^ci Oty
To:
From:
Meeting Date:
Report No: DC 88
Monitoring Committee
Group Manager: Business Services
22 March 2010
Title of Report: MINI MONITORING REPORT FOR EIGHT MONTHS TO 28 FEBRUARY 2010
Purpose of Report: Monitoring
Significance of Decision: Not Significant
Report Writer(s): Paul Davidson, Financial Controller
Summary
To present the financial and performance overview of Council for the eight months ended 28 February 2010.
TCC Ref: 2994437
92 Recommendation
That it be Resolved
(a) That the Group Manager: Business Services' Report (DC 88) be received.
1. Background
The mini monitoring report to the end of February 2010 is provided for Council's information and review.
2. Mini-Monltoring Report
Revenue
Total operating revenue including rates is $87.8m against a year to date budget of $89m with the main cause of the variance due to lower than budgeted user fees. Water by meter revenue remains behind budget reflecting a decline in consumption against budget assumptions. Parking revenue is also behind budget due to lower occupancies in the City Centre.
Asset Development revenue is now ahead of budget with Development Contributions exceeding budget by $1.2m or 15%. This exceeds the same time last year by $1.9m. New Zealand Transport Agency revenue is still behind budget however the variance has reduced since the previous report due to the implementation of the Transportation capital programme.
Operating Expenditure
Operating expenditure is $87.2m, which is consistent with budget despite some unders and overs in various categories. The main areas of underspend year to date are debt servicing (timing of capital programme), repairs and maintenance (timing), and employee related costs (vacant positions). Depreciation exceeds budget due to the impacts of the 2009 asset revaluation. A full review of depreciation has been undertaken as part of planning for the 2010/11 Annual Plan with the level of funding adjusted accordingly.
Net Cost of Service
The net cost of service across all activity areas is $664k behind budget at $18.4m. The cost to fund operational activities is $52.2m which is $1.1 m less than budget. The top three activities favourable to budget are Transportation, Environmental Monitoring and Environmental Policy. The top three activities with net cost of service unfavourable to budget are Strategic Property (timing of asset sales impacting on debt servicing), Wastewater and Indoor Space (depreciation).
Capital Expenditure
Capital expenditure including land purchases and vested assets is $50.Im, which is 36% spent against the full-year budget of $138m. Excluding vested assets the level of capital expenditure is $42.5m spent against a full year budget of $126.5m. Whilst the level of capital expenditure is expected to
2 TCC Ref: 2994437
93 increase throughout the remainder of the year it is expected to be below budget due to a combination of savings on tendered rates and expenditure which has been delayed on certain projects.
The main areas of capital expenditure to date are:
• Three waters • Transportation • Open Space • Indoor Space
$54.Im total budget, $20.2m spent (37%) $24.4m total budget, $9.1m spent (37%) $10.6m total budget, $2.5m spent (24%) $11.7m total budget, $1.6m spent (14%)
3.
3.1
Decision-Making Considerations
Signif icance of Issues and Matters
The Local Government Act 2002 requires a formal assessment of the significance of matters and decisions in this report against Council's Significance Policy. In making this formal assessment the Monitoring Committee is not seeking to assess the importance placed on this issue by specific individuals, groups, or agencies within the community. The Monitoring Committee acknowledges that all reports have a high degree of importance to individuals, groups, or agencies affected by the report.
The matters in this report have been assessed against the Significance Policy. In accordance with the general approach, criteria and thresholds of the policy, the author of this report considers that the stated particular matter(s) are not significant.
This conclusion is based on the following factors:
Issue or Matter
Summary financial information for eight months to February 2010.
Significant / Not Significant
Not significant.
Reason
The report is for information only and Council is not required to make decisions on this information.
Malcolm Gibb Group Manager: Business Services
9 March 2010
Attachment: Financials to February 2010
TCC Ref: 2994437
94 Attachment A
STATEMENT OF FINANCIAL PERFORMANCE
For The 8 Months Ended 28 February 2010
OPERATING REVENUE Rates Revenue User Fees Interest Revenue Other Revenue'
Total Operating Revenue
OPERATING EXPENDITURE Depreciation Loss on Asset Sales Debt Servicing Ottier Expenditure
Administration Expenses Consultants^ Legal Fees Elected Members Remuneration Employee Related Costs Other Expenditure' Repairs & Maintenance
Total Operating Expenditure
2009/10
YTD Actuals
$000
53,764 28,734
554 4.744
87,796
20,187 729
11,991
4,674 1,269
327 570
17,978 20,148 9,285
87,168
2009 /IO
YTD Budget
$000
54,195 30,119
330 4,343
88,987
17,528 0
13,101
3,836 1,250
244 581
19,365 20,656 10,605 87,166
2009 /IO YTD
Variance $000
(431) (1,385)
224 401
(1,191)
(2,659) (729) 1,110
(838) (19) (83)
11 1,387
508 1,320
8
2009/10 % YTD
Variance
%
- 1 % -5% 68% 9%
- 1 %
-15%
~ 8%
-22% -2%
-34% 2% 7% 2%
12% 0%
2009 /10 Total
Budget $000
81,292 44,674
495 6,869
133,330
27,101 0
19,651
5,496 1,929
373 872
29,054 30,434 16,296
131,206
2009/10 % Budget
Spent*
%
66% 64%
112% 69% 66%
74%
~ 61%
85% 66% 88% 65% 62% 66% 57% 66%
2008 /09 YTD
Actuals $000
78,664 27,871
1,151 4,321
112,007
17,815 159
11,197
3,292 1,026
335 567
17,732 19,323 9,490
80,936
NET OPERATING SURPLUS / (DEFICIT) before ASSET DEVELOPMENT REVENUE
638 1,821 (1,183) 2,124 31,071
ASSET DEVELOPMENT REVENUE Development Contributions Vested Assets NZ Transport Authority Subsidies Investment Property Revaluation movements Capital Profit on asset sales
Total Asset Development Revenue
NET SURPLUS / (DEFICIT)
8,811 7,327 1,553
0 58
17,749
18,387
7,644 7,327 2,312
0 0
17,283
19,104
1,167 0
(759) 0
58 466
(717)
15% 0%
-33%
~ -
3%
-4%
11,492 10,991 6,088
0 0
28,571
30,695
77% 67% 26%
~ ~
62%
60%
6,905 16,866 2.775
0 0
26,546
57,617
' this percentage shOLtId be compared to the % through current frnancral year 67%
NOTES: ' Other Revenue Includes Petrol Tax, Donations, Sponsorships, Dividends, External Interest and Subsidies (other than NZ Transport Agency Capital Subsidies).
' Consultants Excludes Legal Fees
Other Expenditure Includes Bank Charges, Debt Collection, Operational Contracts (eg Facilities Mgt, Wwtr Station costs). Audit Fees, Community Grants/Contracts,
95
STATEMENT OF COST OF SERVICES
For The 8 Months Ended 28 February 2010
ACTIVITY AREAS: Airport Animal Services
Aquatics Arts & Heritage Baypark
Building Services WaterfronVCBD Asset Development
Civil Defence Emergency Mangt Com munity Property Services Customer Service Centre
Democracy Economic Development Elder Housing Environmental Monitoring
Environmental Planning Environmental Policy Indoor Space & Active Living
Libraries Open Space - Parks & Coastal
Solid Waste Management Stormwater (Drainage Services) Strategic Property Support Services Transportation Events Tauranga
Wastewater (Drainage Services) Water Supply
Key Activity Area Net Cost Of Service
Head Office & Treasury
Non Significant Activities Vested Assets Subsidies received for Capital Expenditure
Development Contributions Capital Profit On Asset Sales Loss on Disposal of Assets Non-Funded Depreciation
Less Internal Eliminations
TOTAL NET COST OF SERVICE
2009/10
YTD Actuals-Revenues
2,745 628
(4) 0 0
2,377
0 0 0
2,003 829
87 80
807 692
649 18 21
565 196 417
4 4,361 9,220
6,310 896 661
9,538
43,100
70,322 2,178 7,327 1,553 8,811
58
0 0
(27,804)
105,545
2009/10
YTD Actuals-Expenditures
1,692 379
674 1,124
0 2,503
127 0
217 1,487
1,168
1,486 1,628
895 1,158
1,167 1,710 2,492
4,417 3,311 1,544 6,533 4,652
11,220
16,255 1,873
10,544
10,032
95,288
14,009 2,748
0 0 0 0
729 2,188
(27,804)
87,158
2009/10
YTDActuals-Net Cost Of
Service
1,053 249
(678) (1,124)
0
(126) (127)
0
(217) 516
(339) (1,399)
(1,548) (88)
(466)
(518) (1,692)
(2,471)
(3,852) (8,115)
(1,127) (6,529)
(291) (2,000) (9,945)
(977)
(9,883)
(494)
(52,188)
56,313 (570) 7,327
1,553 8,811
58 (729)
(2,188)
0
18,387
2009/10
YTD Budget -Net Cost Of
Service
908 169
(655) (1,178)
0
(66) (209)
0
(205) 414
0
(1,614)
(1,552) 6
(702)
(378) (1,914)
(2,235) (3,991) (8,172) (1,238)
(6,482) 363
(3,046)
(10,424)
(1,149) (9,526)
(450)
(53,326)
57,857 (474) 7,327 2,312 7,644
0 0
(2,278)
(11)
19,051
2009/10
Total Budget-Net Cost Of
Service
1,363
11
(1,291) (1,647)
0
(98) (313)
0 (307)
607
0
(2,420) (1,806)
9 (1,177)
(569) (2,870) (3,185)
(5,986) (12,719)
(1,859) (9,723)
491 (4,341)
(15,888) (1,595)
(14,291)
(1,000)
(80,604)
86,829 (710)
10,991
6,201 11,492
0 0
(3,504)
0
30,695
2008 /09
Total Actuals - Net
Cost Of Service
1,145 303
(741) (1,077)
0
(184) (101)
0 (338)
642 60
(1,569) (1,323)
143 (1,110)
(690) (1,321) (1,870)
(4,478) (8,287) (1,370)
(4,416) (248)
(2,493) (10,644)
(966) (8,204)
51
(49,086)
83,713 (664)
16,866 2,775 6,905
0 0
(2,892) 0
57,617
' this percentage should be compared to the % through current financial year = 67%
NOTES: * Net Cost Of Service: Activity Area Revenue excludes Internal Interest, Vested Assets, Asset Development & Developer Contributions. ActivitiyArea Expenditure excludes Loss On Disposal of assets. Activity Area Expenditure & Revenue figures
' Suppor t Services Inc lude: Business Solutions, City Development, Communications, Finance, Human Resources, Business Information, Property Consultancy S Strategic Planning S Relationships
2 Head Office and Treasury inc lude: Corporate Treasury (Rates Revenue and Intemal Loans), Development Contributions and Reserves, and Strategic Land Purchases
^Non Sign i f icant Activit ies inc lude: City Services Administration, Plant Operating, Water & Wasterwater Utiities & Executive Team Administration
TCC Ref: 2994437
96
97
STATEMENT OF NEW CAPITAL EXPENDITURE
For The 8 Months Ended 28 February 2010
ACTIVITY AREAS:
Airport
Animal Services
Tauranga City Aquatics Limited
Arts & Heritage
Bayparl<
Building Services
WaterfronVCBD
Asset Development
Civil Defence Emergency IVIangt
Community Property Services
Customer Service Centre
Democracy
Economic Development
Elder Housing
Environmental Monitoring
Environmental Planning
Environmental Policy
Indoor Space & Active Living
Libraries
Open Space - Parks & Coastal
Solid Waste Management
stormwater (Drainage Services)
strategic Property
Support Services
Transportation
Events Tauranga
Wastewater (Drainage Services)
Water Supply
Key Activity Area Capi ta l Expend i tu re
Head Office & Treasury
Non Significant Activities
Vested Assets
2009/10
YTD Actuals
760 3 0
14 0 0
62 0 0
799
362
(1) 0
127
22
0
14
1,638
1,183
2,534
50
3,526
3,879
1,068
9,092 700
9,593
7,031
42,456
2009/10
YTD Budget
760 0
1,684 0 0 1
53
0
0
972
532 17
0
227
21 3 0
1,167
1,386
5,269
50
4,978 4,133 1,330
11,591 918
12,373
8,699
56,164
2009/10 YTD
Variance
0
(3) 1,684
(14) 0 1
(9)
0
0
173
170 18 0
100
(1) 3
(14)
(471)
203
2,735
0
1,452
254
262 2,499
218
2,780
1,668
13,708
2009/10 %YTD
Variance
0%
100%
100%
-17%
18%
32%
106%
44%
-5%
100%
-40% 15% 52%
0% 29%
6%
20%
22%
24%
22%
19%
2009/10 Total
Budget
1,140
0
2,526
0
0
1
1,037
0
0
3,313
797
26
0
340
36
4
45
11,697
2,289
10,608
50
13,566
10,575 2,075
24,381 1,458
22,572
17,988
2009/10 2008/09 % Budget YTD
Spent* Actuals
24% 126,524
0 307
7,327
0 0
207 (100)
7,327 0 -48%
0%
0
310
10,991
67%
0%
0%
6%
24%
45%
-4%
37%
6 1 %
0%
3 1 %
14%
52%
24%
100%
26%
37%
5 1 %
37%
48%
42%
39%
34%
99%
67%
745 0
36 0 0 1
633 0 0
939 11
2
0
183
53
4
264
1,541
1,447
3,066
56
10,983
4,057
1,472
13,660 488
8,788
5,005
53,434
0
48 16,866
TOTAL NEW CAPITAL EXPENDITURE 50,090 63,698 13,608 21% 137,825 36% 70,348
' th is percentage should be coni pared lo the % through current financial year 67%
NOTES: * Capi ta l Expend i tu re :
NB: Key Activity Area capital expenditure includes all significant projects and land purchases but excludes Vested Assets.
1 Suppor t Serv ices i nc lude :
Business Solutions, Qty Development, Communications, Finance, Human Resources, Business Information, Property Consultancy
& Strategic Planning & Relationships
^ Head Off ice and Treasury i nc lude :
Corporate Treasury (Rates Revenue and Intemal Loans), Development Contributions and Reserves
^Non S ign i f i can t Act iv i t ies i nc lude :
City Services Administration, Plant Operating, Water & Wasterwater Utiities & Executive Team Administration
TCC Ref: 2994437
98
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99
STATEMENT OF FINANCIAL POSITION
As At 28 February 2010
ASSETS - CURRENT Cash and Cash Equivalents Debtors ancJ Other Receivables Inventories Non-Current Assets Intendecj for Sale Derivative Financial Instruments
Total Current Assets
ASSETS - NON-CURRENT Derivative Financial Instruments Financial Assets Other investments Fixed Assets
Total Non-Current Assets
2009/10 YTD Actuals
$000
34,029 19,993
383 0
375
54,780
2,429 8,294
31,319 2,734,586
2,776,628
2008 /09 YTD Actuals
$000
43,422 20,081
124 0
168
63,795
3,613
0 37,755
2,715,779
2,757,147
TOTAL ASSETS 2,831,408 2,820,942
LIABILITIES-CURRENT Creditors and Other Payables Derivative Financial Instruments - Current Portion Employee Benefit Liabilities Deposits Held income In Advance Borrowings - Current Portion
Total Current Liabilities
LIABILITIES - NON-CURRENT Borrowings Derivative Financial Instruments Provisions
Total Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY Retained Earnings Restricted Reserves Council-created Reserves Property, Plant and Equipment Reserves
43,932 1,052
2,831
4,056
8,475 29,859
90,205
258,930
10,760 14,000
283,690
373,895
2,457,513
671,790 7,014
44,947 1,733,762
2,457,513
13,307 0
3,056
4,119
0
21,750
42,232
252,163
0 14,000
266,163
308,395
2,512,547
715,580
12,995
42,061 1,741,911
2,512,547